Stock Market Outlook for December 5, 2016 –
A battle is brewing between buyers and sellers on the S&P 500 (INDEXSP:.INX) this morning. But buyers are active. Price support on S&P 500 futures lies near 2195.50. The line in the sand for buyers today will be near 2187.75. Price support levels to watch below that level are 2184-2181. Looking at the upside, initial price resistance was at 2203.75. A breach over that level and we are back to seeing upside pressure. Stock market momentum is mildly bearish but can turn if we sustain a breach of 2104.
See today’s economic calendar with a rundown of releases.
TODAY’S RANGE OF MOTION
S&P 500 Futures Trading Chart – December 5
Upside trades – Two options for entry–
Positive retest of continuation level -2203.75
Positive retest of support level– 2197.50
Opening targets ranges -2195.50, 2197.50, 2200.75, 2203.75, 2206.75, 2210.75, 2213.50, AND 2216.50
Downside trades – Two options for entry–
Failed retest of resistance level – 2203
Failed retest of support level – 2192
Opening target ranges – 2200.75, 2197.75, 2195.75, 2192.25, 2187.75, 2184.25, 2181.50, 2179.50, and 2177.75
Â
Nasdaq Futures
The NQ_F has lifted off the near term low near 4701.5, but traders are finding lots of sellers at the key levels between 4776 and 4770. The bounce zone holds at 4716, but a fade there allows us to move into 4701.50 and possibly 4691. This has been a damaging move but on larger time frames, we are still well with the range of motion we have held through July. Resistance sits at 4806.50 to 4818.
Upside trades – Two options
Positive retest of continuation level – 4776.50
Positive retest of support level – 4741.50
Opening target ranges -4735.75, 4741.25, 4747.75, 4753.50, 4764.50, 4770.25, 4775.50, 4790.50, 4805.75, and 4818
Downside trades- Two options
Failed retest of resistance level -4775.50
Failed retest of support level – 4748
Opening target ranges – 4770.50, 4765.75, 4760.75, 4756.50, 4748.25, 4726.75, 4717.75, 4707.75, 4701.75, 4692.25, and 4680.25 if the chart continues to fade
Crude Oil
Oil’s hold of higher lows on Friday telegraphed that price action could easily resolve north. This morning we are on the stretch to test higher levels as news holds prices higher. Support holds at 50.25 and below there 49.4. Resistance rests between 52.73 and 53.50
Upside trades – Two options
Positive retest of continuation level – 52.34
Positive retest of support level – 51.68
Opening target ranges for non-members – 51.97, 52.22, 52.4, 52.7, 53.03, and 53.54
Downside trades – Two options
Failed retest of resistance level – 52.2
Failed retest of support level – 51.6
Opening target ranges for non-members – 51.94, 51.73, 51.46, 51.18, 50.88, and 50.25
If you’re interested in watching these trades go live, join us in the live trading room from 9am to 11:30am each trading day.
Visit TheTradingBook for more information.
If you’re interested in the live trading room, it is now primarily stock market futures content, though we do track heavily traded stocks and their likely daily trajectories as well – we begin at 9am with a morning report and likely chart movements along with trade setups for the day.
As long as the trader keeps himself aware of support and resistance levels, risk can be very adequately managed to play in either direction as bottom picking remains a behavior pattern that is developing with value buyers and speculative traders.
Twitter:Â Â @AnneMarieTrades
The author trades stock market futures every day and may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
